Junk bonds come off the scrapheap

After a sluggish couple of years for high yield bonds, investor sentiment has started to shift. At the peak of the credit crunch, and for some time after, investors shunned the sector on the back of increased potential for defaults. But thanks to an improving macro economic environment and stronger corporate balance sheets, default risk has dropped and demand is on the increase.  Meanwhile, with returns from cash, government bonds and investment grade debt so low, investors chasing yield are turning to junk bonds for answers especially as the threat of rising interest rates loom. Howe...